Annual and lifetime interest rate caps

Home equity interest rates are tied to the prime rate, a standard index used as a basis for determining the rate charged on borrowed money. If the prime rate increases, so does the APR on the line of credit. But with our rate caps, the variable rate on your line of credit will never increase more than 2% annually based on the date you signed your line of credit agreement. The rate will also never be more than 7% higher than where you started.

Fixed-rate advances

Our line of credit can adapt as your needs change. During the draw period, you can convert all or part of your variable-rate balance into a fixed rate. Learn more about fixed-rate advances

Payments that rebuild equity

Our principal-reducing payments help you rebuild the equity in your home and pay less interest compared to other lenders' interest-only payments. Learn more about payments

A home equity line of credit is a revolving form of credit that uses your home as collateral. If you're a qualified homeowner with available equity, a home equity line of credit can provide you with:

Secured financing based on the equity in your home, which typically results in lower interest rates than many unsecured forms of credit.

A revolving source of funds that you can borrow against and pay back as many times as you'd like during the draw period.

You will have monthly payments which include both principal and interest.

Your minimum payment will be the lesser of $100.00 or the amount needed to repay your balance with interest.

If you withdraw additional funds during the draw period or the variable-interest rate changes, your monthly payment may change.

Your payments are recalculated monthly to repay your principal balance over the remaining months of your draw period and your repayment term.

Understanding the phases of a home equity line of credit

Draw period. The draw period is the fixed length of time during which you can access funds from your home equity line of credit. It runs for 10 years plus 1 month from the date you open the account. Unless you choose to take a fixed-rate advance your annual percentage rate (APR) during the draw period is typically variable and tied to the prime rate.,

End of draw. End of draw refers to the date your draw period ends and you can no longer access funds from your home equity line of credit.

Repayment period. After your draw period ends, you'll enter the repayment period. Your access to funds will end, but you'll keep the same payment structure as in the draw period — principal-plus-interest payment tied to the variable rate.

Tracking the status of your application has never been easier

After you apply for a home equity line of credit, use your LoanTrackerSM to complete important tasks and check your application status — any day or time, from any computer, smartphone, or tablet.your LoanTracker is not available with all loans; talk to a home mortgage consultant for details.

What to expect during the application process

Step 1: We'll work with you to complete your application, and help with any questions you may have regarding the process. We'll also review any specific documentation that we'll need from you and update you every step of the way.

Step 2: We'll confirm your information. We'll make every attempt to let you know what weâll need at the beginning of the process, but we may need additional information as we move forward.

Step 3: We'll confirm your home's value, either through a drive-by or similar assessment or an in-person inspection of your home. If we need a personal inspection, we'll have a licensed real estate appraiser or broker contact you directly.

Step 4: We'll ask for your signature, if your application is approved. Each borrower will need to sign the documents, and some of them will also need to be notarized. Please bring proper identification when you're ready to sign.

Step 5: Congratulations! Your home equity account is now open. Depending on your transaction and property type, there may be a 3-day waiting period before you can access your funds. For your convenience, we're pleased to provide you with several options for accessing your funds.

Our home equity lines of credit give you a number of ways to access funds, including checks and phone transfers.

Transfer funds online

Make immediate transfers from your account at any time by signing on to Wells Fargo Online® and going to the Transfer tab.

Transfer funds over the phone

Use our toll-free number with any-day, any-time automated access to your account. Advances made outside of business hours will become effective on the next business day.

Home equity line of credit checks

Use checks you receive when you open your account (if requested).

Enhanced Access® Visa® credit card

Access your available credit anywhere that accepts Visa credit cards (if requested). Worry less with Zero Liability protection so you're not held responsible for unauthorized use of your card (or number) if reported promptly.

Relationship Discount

Ask us about a relationship discount that may be available when you open a home equity line of credit account. Terms apply.

There is no limit on the maximum amount of a fixed rate advance taken at origination (up to your credit limit). The minimum fixed rate advance amount is $10,000. After account opening, additional fixed rate advances may not exceed $250,000 of the aggregate principal balance, or your credit limit, whichever is less. You may request up to 2 fixed rate advances each year with up to 3 fixed rate advances at one time. Fixed rate advances have a term of 1 to 20 years, depending on the amount advanced; except that for Texas homestead secured accounts, the term is 1 to10 years.

Terms: The line of credit has a draw period of 10 years plus 1 month, after which you will no longer have access to borrow funds and will be required to repay the borrowed balance within a 20-year term. There is a required minimum monthly payment of $100. The account is subject to application, credit qualification, and income verification; additional evaluation and verification criteria may apply. Your actual APR will depend upon your credit transaction and credit history and will be determined when a credit decision is made. For questions, please contact us at 1-800-668-4730.

The minimum draw on a home equity line of credit is $300 for properties in all states except Texas, where lines attached to homestead properties have a minimum draw of $4,000. If less than the minimum draw amount is available on the line, you may not draw again until the minimum amount is available. Texas homestead properties are limited to 80% combined loan to fair market value for home equity financing.

APR and Fees: The APR for a Wells Fargo Home Equity Line of Credit is variable and based on the highest prime rate published in the Western edition of The Wall Street Journal "Money Rates" table (called the "Index") plus a margin. The index as of the last change date of June 14, 2018, is 5.00%. As of July 20, 2018, margins range from 4.750% to -0.375% for lines of credit from $25,000 to $499,999 secured by owner-occupied properties with 70% combined loan-to-value. Corresponding variable APRs range from 9.75% to 4.625%. The minimum line of credit amount is $25,000. Your minimum APR, including discounts can't go below the 1% floor rate. Your variable rate won't increase more than 2% per year based on your anniversary date and will never be more than 7% higher than where you started (maximum of 18%).

There is a $75 annual fee, which is waived for the first year. Your annual fee may be waived thereafter; please talk to a banker for details. A $500 prepayment fee may apply if the account is closed within 3 years from account opening. Account opening fees, including applicable state or local mortgage taxes, may be paid to Wells Fargo, its affiliates or third parties and range from $19 to $18,000 depending on the property type, the state in which the property is located and the amount of credit extended. Hazard and, if applicable, flood insurance is required. There is no annual fee or prepayment fee for accounts secured by Texas homestead properties.

Relationship discounts: If you don't have an eligible Portfolio by Wells Fargo® account at the time you open your home equity line of credit, other lesser discounts may be available to you and will require automatic payments from a qualified consumer deposit account. To find out which accounts qualify for a relationship discount, contact a Wells Fargo banker. Relationship discounts cannot be combined.

Availability may be affected by your mobile device's coverage area.

Access checks are not available in Texas. ATM card access and the Enhanced Access® Visa® credit card are not available in Connecticut, New York, or Texas.

New Wells Fargo Home Equity Accounts are subject to credit qualification, income verification, and collateral evaluation. To qualify for a customer relationship discount, you must maintain a qualifying Wells Fargo consumer checking account and make automatic payments to your home equity line of credit from any deposit account. To learn which accounts qualify for the discount, please consult a Wells Fargo banker. Only one qualifying discount per new Wells Fargo home equity line of credit will apply. Wells Fargo Bank, N.A. Member FDIC. Additional restrictions, limitations, and exclusions may apply.